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You are considering the purchase of an investment that would pay you $5,000 per year for Years 1-3, $2,000 per year for Years 4-7, and $5,000 per year for Years 8-10. If you require a 5 percent rate of return, and the cash flows occur at the end of each year, then how much should you be willing to pay for this investment?

Financial Management, Finance

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